Standard&Poor's affirmed its single-'A'-minus local currency long-term corporate credit and senior secured debt ratings on South Africa-based electricity utility ESKOM, on July 4, 2002, following an annual review of the company. The outlook is stable. At the same time, Standard&Poor's affirmed its triple-'B'-minus foreign currency corporate credit and senior secured debt ratings on ESKOM. The ratings on ESKOM reflect its critical role in the Republic of South Africa's (local currency A-/Stable/A-2; foreign currency BBB-/Stable/A-3) national Reconstruction and Development Program through its successful electrification program, government intention to remain supportive of ESKOM's credit quality, efficiency improvements, and a more supportive regulatory regime. These strengths are offset by a relatively weak financial structure, long-term exposure to the restructuring
